**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC  20549**

**FORM N-Q**

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANANGEMENT INVESTMENT COMPANY

 

**Investment Company Act file number 811-01701**

**DAVIS SERIES, INC.**

(Exact name of registrant as specified in charter)

2949 East Elvira Road, Suite 101

Tucson, AZ  85706

(Address of principal executive offices)

 

Thomas D. Tays

Davis Selected Advisers, L.P.

2949 East Elvira Road, Suite 101

Tucson, AZ  85706

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 520-806-7600

**Date of fiscal year end: December 31, 2005**

**Date of reporting period: September 30, 2005**

 

 

 

 

 

**ITEM 1.  SCHEDULE OF INVESTMENTS**

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS OPPORTUNITY FUND**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (94.13%)**

 

**APPAREL RETAIL – (0.51%)**

 

 

 

 

28,300

 

Sears Holdings Corp.*

$

3,521,228

 

**AUTOMOBILES & COMPONENTS – (2.61%)**

 

 

 

 

246,300

 

Autoliv, Inc. 

 

10,714,050

 

 

211,000

 

Lear Corp. 

 

7,167,670

 

 

 

 

 

 

17,881,720

 

**AUTOMOTIVE RETAIL – (8.40%)**

 

 

 

 

442,200

 

Advance Auto Parts, Inc.*

 

17,104,296

 

 

1,230,000

 

AutoNation, Inc.*

 

24,563,100

 

 

190,500

 

AutoZone, Inc.*

 

15,859,125

 

 

 

 

 

 

57,526,521

 

**CAPITAL GOODS – (7.30%)**

 

 

 

 

151,100

 

Franklin Electric Co., Inc. 

 

6,241,941

 

 

462,000

 

Hughes Supply, Inc. 

 

15,061,200

 

 

702,500

 

Robbins & Myers, Inc. 

 

15,792,200

 

 

16,910

 

Tae Young Corp. 

 

615,793

 

 

442,500

 

Tyco International Ltd. 

 

12,323,625

 

 

 

 

 

 

50,034,759

 

**CAPITAL MARKETS – (3.96%)**

 

 

 

 

947,500

 

E*TRADE Financial Corp.*

 

16,676,000

 

 

19,250

 

Julius Baer Holding, Ltd. AG

 

1,506,334

 

 

60,100

 

Legg Mason, Inc. 

 

6,592,369

 

 

82,700

 

Refco Inc.*

 

2,337,929

 

 

 

 

 

 

27,112,632

 

**COMMERCIAL BANKS – (1.87%)**

 

 

 

 

418,000

 

Commerce Bancorp, Inc. 

 

12,828,420

 

**COMMERCIAL SERVICES & SUPPLIES – (0.46%)**

 

 

 

 

47,500

 

D&B Corp.*

 

3,128,825

 

**CONSUMER DURABLES & APPAREL – (5.95%)**

 

 

 

 

293,100

 

Garmin Ltd. 

 

19,858,991

 

 

292,464

 

Hunter Douglas NV

 

13,926,338

 

 

87,100

 

Mohawk Industries, Inc.*

 

6,989,775

 

 

 

 

 

 

40,775,104

 

**CONSUMER FINANCE – (1.55%)**

 

 

 

 

417,500

 

First Marblehead Corp. 

 

10,604,500

 

**CONSUMER SERVICES – (2.36%)**

 

 

 

 

1,196,000

 

ServiceMaster Co. 

 

16,193,840

 

**DIVERSIFIED FINANCIAL SERVICES – (6.35%)**

 

 

 

 

170,700

 

Groupe Bruxelles Lambert S.A. 

 

16,668,900

 

 

164,241

 

Pargesa Holding S.A., Bearer Shares

 

13,879,700

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS OPPORTUNITY FUND – (Continued)**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (Continued)**

 

**DIVERSIFIED FINANCIAL SERVICES – (Continued)**

 

 

 

 

472,900

 

Power Corp. of Canada

$

12,952,375

 

 

 

 

 

 

43,500,975

 

**ENERGY – (1.79%)**

 

 

 

 

3,800

 

Tenaris S.A., ADR

 

523,792

 

 

191,500

 

Transocean Inc.*

 

11,740,865

 

 

 

 

 

 

12,264,657

 

**FOOD & STAPLES RETAILING – (0.53%)**

 

 

 

 

85,000

 

Costco Wholesale Corp. 

 

3,658,825

 

**FOOD, BEVERAGE, & TOBACCO – (2.37%)**

 

 

 

 

127,125

 

Heineken Holding NV

 

3,747,819

 

 

4,400

 

Lotte Chilsung Beverage Co., Ltd. 

 

4,182,846

 

 

5,160

 

Lotte Confectionery Co., Ltd. 

 

5,291,040

 

 

35,070

 

Nong Shim Holdings Co., Ltd. 

 

3,028,085

 

 

 

 

 

 

16,249,790

 

**GENERAL MERCHANDISE STORE – (0.89%)**

 

 

 

 

660,500

 

99 Cents Only Stores*

 

6,109,625

 

**HEALTH CARE EQUIPMENT & SERVICES – (7.58%)**

 

 

 

 

90,500

 

AmerisourceBergen Corp. 

 

6,995,650

 

 

283,000

 

Cardinal Health, Inc. 

 

17,953,520

 

 

109,400

 

Fisher Scientific International, Inc.*

 

6,788,270

 

 

183,600

 

IDEXX Laboratories, Inc.*

 

12,278,250

 

 

193,000

 

Lincare Holdings Inc.*

 

7,916,860

 

 

 

 

 

 

51,932,550

 

**HOUSEHOLD & PERSONAL PRODUCTS – (0.66%)**

 

 

 

 

14,900

 

Amorepacific Corp. 

 

4,512,123

 

**INSURANCE BROKERS – (3.89%)**

 

 

 

 

291,000

 

Brown & Brown, Inc. 

 

14,459,790

 

 

401,500

 

Marsh & McLennan Cos, Inc. 

 

12,201,585

 

 

 

 

 

 

26,661,375

 

**LIFE & HEALTH INSURANCE – (0.55%)**

 

 

 

 

83,000

 

AFLAC Inc. 

 

3,759,900

 

**MATERIALS – (3.36%)**

 

 

 

 

324,600

 

Huntsman Corp.*

 

6,345,930

 

 

100,000

 

Sealed Air Corp.*

 

4,746,000

 

 

186,000

 

Sigma-Aldrich Corp. 

 

11,914,230

 

 

 

 

 

 

23,006,160

 

**MEDIA – (7.35%)**

 

 

 

 

463,000

 

EchoStar Communications Corp., Class A*

 

13,702,485

 

 

330,000

 

Lagardere S.C.A. 

 

23,419,838

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS OPPORTUNITY FUND – (Continued)**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (Continued)**

 

**MEDIA – (Continued)**

 

 

 

 

52,000

 

NTL Inc.*

$

3,471,000

 

 

955,000

 

WPP Group PLC

 

9,719,150

 

 

 

 

 

 

50,312,473

 

**PROPERTY & CASUALTY INSURANCE – (1.84%)**

 

 

 

 

86,000

 

Ambac Financial Group, Inc. 

 

6,197,160

 

 

66,150

 

Cincinnati Financial Corp.

 

2,771,354

 

 

50,000

 

FPIC Insurance Group, Inc.*

 

1,797,750

 

 

5,600

 

Markel Corp.*

 

1,850,800

 

 

 

 

 

 

12,617,064

 

**REINSURANCE – (1.73%)**

 

 

 

 

42,000

 

Everest Re Group, Ltd. 

 

4,111,800

 

 

135,625

 

Transatlantic Holdings, Inc. 

 

7,730,625

 

 

 

 

 

 

11,842,425

 

**SOFTWARE & SERVICES – (3.53%)**

 

 

 

 

224,700

 

Iron Mountain Inc.*

 

8,246,490

 

 

581,000

 

Reynolds & Reynolds Co., Class A

 

15,925,210

 

 

 

 

 

 

24,171,700

 

**SPECIALTY STORES – (2.15%)**

 

 

 

 

495,000

 

Office Depot, Inc.*

 

14,701,500

 

**TECHNOLOGY HARDWARE & EQUIPMENT – (5.20%)**

 

 

 

 

401,900

 

Agilent Technologies, Inc.*

 

13,162,225

 

 

37,000

 

Lexmark International, Inc., Class A*

 

2,258,850

 

 

786,300

 

Molex Inc., Class A

 

20,192,184

 

 

 

 

 

 

35,613,259

 

**TELECOMMUNICATION SERVICES – (3.02%)**

 

 

 

 

3,144,600

 

Covad Communications Group, Inc.*

 

3,348,999

 

 

343,300

 

SK Telecom Co., Ltd., ADR

 

7,497,672

 

 

429,600

 

Telewest Global, Inc.*

 

9,850,728

 

 

 

 

 

 

20,697,399

 

**THRIFT & MORTGAGE FINANCE – (2.03%)**

 

 

 

 

234,000

 

Golden West Financial Corp. 

 

13,897,260

 

**UTILITIES – (4.34%)**

 

 

 

 

5,305,000

 

Calpine Corp.*

 

13,739,950

 

 

340,000

 

Sempra Energy

 

16,000,400

 

 

 

 

 

 

29,740,350

 

 

 

 

 

Total Common Stock – (identified cost $517,121,524)

 

644,856,959

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS OPPORTUNITY FUND  – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**CONVERTIBLE BONDS – (0.75%)**

 

**TELECOMMUNICATION SERVICES – (0.75%)**

 

 

 

$

5,600,000

 

Level 3 Communications, Inc., Conv. Sr. Notes, 10.00%, 05/01/11 (b)

 

 

 

 

 

 

(identified cost $5,600,000)

$

5,157,600

 

 

**SHORT TERM INVESTMENTS – (4.57%)**

 

**FEDERAL HOME LOAN BANK – (0.34%)**

 

 

 

 

2,360,000

 

3.5625%, 10/26/05 – (identified cost $2,354,161)

 

2,354,161

 

 

**REPURCHASE AGREEMENTS – (4.23%)**

 

 

17,581,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $17,586,670

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $17,932,620)

 

17,581,000

 

 

11,354,000

 

UBS Financial Services Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $11,357,662

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $11,581,080)

 

11,354,000

 

 

 

 

 

Total Repurchase Agreements – (identified cost $28,935,000)

 

28,935,000

 

 

 

 

 

Total Short Term Investments – (identified cost $31,289,161)

 

31,289,161

 

 

 

 

 

Total Investments – (99.45%) – (identified cost $554,010,685) – (a)

 

681,303,720

 

 

 

 

Other Assets Less Liabilities – (0.55%)

 

3,749,437

 

 

 

 

Net Assets – (100%)

$

685,053,157

 

 

*Non-Income Producing Security.

 

(a)    Aggregate cost for Federal Income Tax purposes is $555,865,822.  At September 30, 2005 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

 

Unrealized appreciation

$

140,540,661

 

 

 

 

Unrealized depreciation

 

(15,102,763

)

 

 

 

Net unrealized appreciation

$

125,437,898

 

 

(b)    Illiquid Security – Securities may be considered illiquid if they lack a readily available market or if valuation has not changed for a certain period of time.  The aggregate value of illiquid securities in Davis Opportunity Fund was $5,157,600, or 0.75% of the Fund’s net assets as of September 30, 2005. 

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS GOVERNMENT BOND FUND**

 
 
 

 

 

 
**Principal**

**Security**

**Value**

 
**MORTGAGES – (44.52%)**

 

**FANNIE MAE POOLS – (15.70%)**

 

 

 

$

411,221

 

6.324%, 10/01/08 Pool No. 380999

$

413,278

 

 

1,646,559

 

5.00%, 08/01/11 Pool No. 357609

 

1,655,401

 

 

6,303,431

 

6.00%, 09/01/17 Pool No. 665776

 

6,484,844

 

 

 

 

 

 

 

 

 

 

 

Total FANNIE MAE – (identified cost $8,696,805)

 

8,553,523

 

 

**FREDDIE MAC POOLS – (28.82%)**

 

 

 

 

211,953

 

5.50%, 10/01/06 Pool No. M90680

 

213,343

 

 

1,813,058

 

4.50%, 03/01/08 Pool No. M90803

 

1,817,953

 

 

1,706,717

 

3.50%, 08/01/08 Pool No. M90830

 

1,688,711

 

 

1,981,828

 

3.00%, 04/01/10 Pool No. M90982

 

1,907,013

 

 

1,915,957

 

5.00%, 05/01/10 Pool No. M90980

 

1,924,464

 

 

4,768,902

 

5.00%, 06/01/10 Pool No. M90984

 

4,790,076

 

 

992,445

 

3.50%, 04/01/12 Pool No. M80974

 

960,876

 

 

1,145,959

 

6.50%, 01/01/15 Pool No. G11063

 

1,180,372

 

 

1,189,392

 

6.00%, 10/01/16 Pool No. E01054

 

1,222,731

 

 

 

 

 

 

 

 

 

 

 

Total FREDDIE MAC – (identified cost $15,826,621)

 

15,705,539

 

 

 

 

 

 

 

 

 

 

 

Total Mortgages – (identified cost $24,523,426)

 

24,259,062

 

 

**GOVERNMENT AGENCY NOTES – (53.65%)**

 

 

 

 

500,000

 

Fannie Mae, 3.668%, 10/07/05 (b)

 

500,000

 

 

5,000,000

 

Fannie Mae, 7.125%, 03/15/07

 

5,190,550

 

 

2,000,000

 

Fannie Mae, 6.00%, 05/15/08

 

2,076,580

 

 

2,500,000

 

Fannie Mae, 3.80%, 09/29/09

 

2,431,550

 

 

5,000,000

 

Federal Farm Credit Bank, 3.67938%, 01/18/06 (b)

 

5,000,700

 

 

1,000,000

 

Federal Home Loan Bank, 2.60%, 09/26/06

 

983,570

 

 

1,000,000

 

Federal Home Loan Bank, 4.00%, 06/13/08

 

989,060

 

 

300,000

 

Federal Home Loan Bank, 5.37%, 07/12/11

 

299,706

 

 

5,000,000

 

Freddie Mac, 5.50%, 07/15/06

 

5,049,650

 

 

1,500,000

 

Freddie Mac, 3.00%, 09/29/06

 

1,480,875

 

 

1,000,000

 

Freddie Mac, 3.00%, 11/17/06

 

985,320

 

 

4,340,000

 

Freddie Mac, 3.40%, 10/15/07

 

4,246,690

 

 

 

 
 

 

 

Total Government Agency Notes – (identified cost $29,631,997)

 

29,234,251

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS GOVERNMENT BOND FUND – (Continued)**

 
 
 

 

 

 
**Principal**

**Security**

**Value**

 
**SHORT TERM INVESTMENTS – (2.49%)**

 

$

822,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $822,265

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $838,440)

$

822,000

 

 

531,000

 

UBS Financial Services Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $531,171

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $541,620)

 

531,000

 

 

 

 

 

Total Short Term Investments – (identified cost $1,353,000)

 

1,353,000

 

 

 

 

 

Total Investments – (100.66%) – (identified cost $55,508,423) – (a)

 

54,846,313

 

 

 

 

Liabilities Less Other Assets – (0.66%)

 

(358,431

)

 

 

 

Net Assets – (100.00%)

$

54,487,882

 

 

(a)    Aggregate cost for Federal Income Tax purposes is $55,508,423.  At September 30, 2005 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

 

Unrealized appreciation

$

2,337

 

 

 

 

Unrealized depreciation

 

(664,447

)

 

 

 

Net unrealized depreciation

$

(662,110

)

 

(b)    The interest rates on floating rate securities, shown as of September 30, 2005, may change daily or less frequently and are based on indices of market interests rates.

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS GOVERNMENT MONEY MARKET FUND**

 

 

 

 
**Principal**

**Security**

**Value**

 
**FANNIE MAE – (10.97%)**

 
$

5,000,000

 

3.38625%, 10/03/05 (b)

$

4,999,978

 

 

6,000,000

 

3.668%, 10/07/05 (b)

 

6,000,020

 

 

2,500,000

 

2.25%, 10/28/05

 

2,499,806

 

 

4,000,000

 

2.17%, 11/25/05

 

3,992,848

 

 

2,000,000

 

2.25%, 12/09/05

 

1,996,097

 

 

11,000,000

 

6.00%, 12/15/05

 

11,055,608

 

 

1,000,000

 

5.875%, 02/02/06

 

1,006,565

 

 

3,855,000

 

2.03%, 02/09/06

 

3,830,436

 

 

1,994,000

 

5.50%, 02/15/06

 

2,005,400

 

 

6,000,000

 

2.35%, 04/29/06

 

5,958,660

 

 

10,000,000

 

3.84%, 05/09/06 (b)

 

9,998,804

 

 

5,000,000

 

2.50%, 05/10/06

 

4,953,320

 

 

2,475,000

 

3.02%, 06/01/06

 

2,457,795

 

 

5,000,000

 

1.75%, 06/16/06

 

4,915,604

 

 

 

 

 

 

 

 

 

 

 

Total FANNIE MAE – (identified cost $65,670,941)

 

65,670,941

 

 

**FEDERAL FARM CREDIT BANK – (0.62%)**

 
 

500,000

 

2.25%, 01/30/06

 

497,764

 

 

3,000,000

 

2.00%, 03/08/06

 

2,975,462

 

 

1,000,000

 

2.88%, 06/29/06

 

993,600

 

 

 

 

 

 

 

 

 

 

 

Total Federal Farm Credit Bank – (identified cost $4,466,826)

 

4,466,826

 

 

**FEDERAL HOME LOAN BANK – (19.81%)**

 
 

1,500,000

 

3.61125%, 10/05/05 (b)

 

1,499,993

 

 

8,000,000

 

2.125%, 11/15/05

 

7,987,987

 

 

4,500,000

 

4.375%, 11/15/05

 

4,505,289

 

 

1,600,000

 

6.49%, 11/18/05 (b)

 

1,606,037

 

 

500,000

 

1.875%, 12/09/05

 

498,406

 

 

2,000,000

 

2.875%, 12/30/05

 

1,995,921

 

 

1,000,000

 

1.75%, 01/12/06

 

995,165

 

 

3,000,000

 

1.75%, 01/12/06

 

2,985,534

 

 

905,000

 

2.60%, 01/27/06 (c)

 

900,781

 

 

2,910,000

 

2.00%, 02/13/06

 

2,891,154

 

 

4,500,000

 

3.00%, 03/17/06

 

4,481,650

 

 

5,000,000

 

4.00%, 03/28/06

 

5,000,000

 

 

5,000,000

 

1.86%, 04/07/06

 

4,944,649

 

 

8,000,000

 

4.00%, 04/21/06

 

7,999,050

 

 

8,000,000

 

3.50%, 04/25/06 (d)

 

8,000,000

 

 

1,500,000

 

2.02%, 04/28/06

 

1,485,275

 

 

5,050,000

 

3.68%, 04/28/06 (b)

 

5,047,764

 

 

7,940,000

 

5.375%, 05/15/06

 

7,997,944

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS GOVERNMENT MONEY MARKET FUND – (Continued)**

 

 

 

 
**Principal**

**Security**

**Value**

 
**FEDERAL HOME LOAN BANK – (Continued)**

 
$

1,040,000

 

3.00%, 06/01/06

$

1,033,343

 

 

1,270,000

 

3.45%, 06/22/06 (d)

 

1,270,000

 

 

1,000,000

 

2.25%, 06/23/06

 

988,139

 

 

22,500,000

 

3.625%, 07/21/06 (d)

 

22,500,000

 

 

15,000,000

 

3.59%, 08/02/06 (b)

 

15,000,000

 

 

 

 

 

 

 

 

 

 

 

Total Federal Home Loan Bank – (identified cost $111,614,082)

 

111,614,081

 

 

**FREDDIE MAC – (8.24%)**

 
 

2,765,000

 

2.01%, 10/06/05

 

2,764,544

 

 

5,500,000

 

2.125%, 11/15/05

 

5,492,167

 

 

3,021,000

 

2.30%, 11/17/05

 

3,016,816

 

 

1,000,000

 

2.25%, 11/28/05

 

998,205

 

 

1,065,000

 

2.50%, 12/16/05

 

1,062,381

 

 

7,500,000

 

5.25%, 01/15/06

 

7,530,677

 

 

3,165,000

 

5.95%, 01/19/06

 

3,186,565

 

 

6,000,000

 

2.15%, 02/10/06

 

5,962,821

 

 

4,000,000

 

2.25%, 02/17/06

 

3,975,784

 

 

4,200,000

 

6.28%, 03/06/06

 

4,250,366

 

 

4,295,000

 

2.15%, 06/02/06

 

4,243,529

 

 

1,000,000

 

2.50%, 06/12/06 (d)

 

988,094

 

 

2,000,000

 

1.875%, 06/30/06

 

1,968,110

 

 

 

 

 

 

 

 

 

 

 

Total FREDDIE MAC – (identified cost $45,440,059)

 

45,440,059

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS GOVERNMENT MONEY MARKET FUND – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**REPURCHASE AGREEMENTS – (60.87%)**

 

$

208,411,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $208,478,213

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $212,579,220)

$

208,411,000

 

 

134,592,000

 

UBS Financial Services Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $134,635,406

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $137,283,840)

 

134,592,000

 

 

 

 

 

Total Repurchase Agreements – (identified cost $343,003,000)

 

343,003,000

 

 

 

 

 

Total Investments – (100.51%) – (identified cost $570,194,907) – (a)

 

570,194,907

 

 

 

 

Liabilities Less Other Assets – (0.51%)

 

(8,096,565

)

 

 

 

Net Assets – (100%)

$

562,098,342

 

 

(a)

Aggregate cost for Federal Income Tax Purposes is $570,194,907.

 

(b)    The interest rates on floating rate securities, shown as of September 30, 2005, may change daily or less frequently and are based on indices of market interests rates. For purposes of amortized cost valuation, the maturity dates of these securities are considered to be the effective maturities, based on the reset dates of the securities’ variable rates. 

 

(c)

The interest rates on variable rate securities represents the current rate as of September 30, 2005.

 

(d)    Represents a step-up bond: a bond that pays one coupon rate for an initial period followed by a higher coupon rate.

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS FINANCIAL FUND**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (99.94%)**

 

**CAPITAL GOODS – (7.94%)**

 

 

 

 

2,450,000

 

Tyco International Ltd. 

$

68,232,500

 

**COMMERCIAL BANKS – (4.32%)**

 

 

 

 

1,208,000

 

Commerce Bancorp, Inc. 

 

37,073,520

 

**COMMERCIAL SERVICES & SUPPLIES – (6.78%)**

 

 

 

 

883,750

 

D&B Corp.*

 

58,212,613

 

**CONSUMER FINANCE – (14.85%)**

 

 

 

 

1,949,000

 

American Express Co. 

 

111,950,560

 

 

615,000

 

First Marblehead Corp. 

 

15,621,000

 

 

 

 

 

 

127,571,560

 

**CONSUMER SERVICES – (2.21%)**

 

 

 

 

791,000

 

H&R Block, Inc. 

 

18,968,180

 

**DIVERSIFIED FINANCIAL SERVICES – (8.87%)**

 

 

 

 

96,333

 

Citigroup Inc. 

 

4,385,078

 

 

802,560

 

JPMorgan Chase & Co. 

 

27,230,861

 

 

872,600

 

Moody’s Corp. 

 

44,572,408

 

 

 

 

 

 

76,188,347

 

**FOOD, BEVERAGE, & TOBACCO – (3.47%)**

 

 

 

 

405,000

 

Altria Group, Inc. 

 

29,852,550

 

**LIFE & HEALTH INSURANCE – (0.75%)**

 

 

 

 

208,700

 

China Life Insurance Co., Ltd., ADR*

 

6,440,482

 

**MATERIALS – (2.54%)**

 

 

 

 

459,000

 

Sealed Air Corp.*

 

21,784,140

 

**MULTI-LINE INSURANCE – (11.35%)**

 

 

 

 

826,796

 

American International Group, Inc. 

 

51,228,280

 

 

501,200

 

Loews Corp. 

 

46,315,892

 

 

 

 

 

 

97,544,172

 

**PROPERTY & CASUALTY INSURANCE – (17.86%)**

 

 

 

 

597

 

Berkshire Hathaway Inc., Class A*

 

48,954,000

 

 

731,356

 

Cincinnati Financial Corp. 

 

30,640,160

 

 

337,300

 

FPIC Insurance Group, Inc.*

 

12,127,621

 

 

88,200

 

Markel Corp.*

 

29,150,100

 

 

311,000

 

Progressive Corp. (Ohio)

 

32,583,470

 

 

 

 

 

 

153,455,351

 

**REINSURANCE – (12.04%)**

 

 

 

 

225,000

 

Everest Re Group, Ltd. 

 

22,027,500

 

 

1,428,187

 

Transatlantic Holdings, Inc. 

 

81,406,659

 

 

 

 

 

 

103,434,159

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS FINANCIAL FUND – (Continued)**

 
 
 

 

 

 
**Shares/Principal**

**Security**

**Value**

 
**COMMON STOCK – (Continued)**

 

**THRIFT & MORTGAGE FINANCE – (6.96%)**

 

 

 

 

1,007,400

 

Golden West Financial Corp. 

$

59,829,486

 

 

 

 

 

Total Common Stock – (identified cost $453,411,939)

 

858,587,060

 

 

**SHORT TERM INVESTMENTS – (0.13%)**

 

$

681,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $681,220

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $694,620)

 

681,000

 

 

440,000

 

UBS Financial Services Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $440,142

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $448,800)

 

440,000

 

 

 

 

 

Total Short Term Investments – (identified cost $1,121,000)

 

1,121,000

 

 

 

 

 

Total Investments – (100.07%) – (identified cost $454,532,939) – (a)

 

859,708,060

 

 

 

 

Liabilities Less Other Assets – (0.07%)

 

(565,722

)

 

 

 

Net Assets – (100%)

$

859,142,338

 

 

*Non-Income Producing Security.

 

(a)    Aggregate cost for Federal Income Tax purposes is $454,530,384.  At September 30, 2005 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

 

Unrealized appreciation

$

406,867,986

 

 

 

 

Unrealized depreciation

 

(1,690,310

)

 

 

 

Net unrealized appreciation

$

405,177,676

 

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS APPRECIATION & INCOME FUND**

 

 

 

**Shares/Principal**

**Security**

**Value**

**CONVERTIBLE Preferred Stock – (6.39%)**

 

**CAPITAL GOODS – (1.79%)**

 

 

 

 

166,700

 

United Rentals Trust I, 6.50%, 08/01/28, Conv. Pfd. 

$

6,751,350

 

**COMMERCIAL BANKS – (0.97%)**

 

 

 

 

90,000

 

HSBC Finance Corp., (Convertible into HSBC Holdings PLC), 

 

 

 

 

 

 

8.875%, 02/15/06, Adjustable Conversion-Rate Equity Security

 

 

 

 

 

 

Cum. Conv. Pfd. 

 

3,679,200

 

**PROPERTY & CASUALTY INSURANCE – (0.76%)**

 

 

 

 

119,400

 

Travelers Property Casualty Corp., 4.50%, 04/15/32, Conv. Pfd. 

 

2,872,764

 

**TRANSPORTATION – (0.73%)**

 

 

 

 

161,300

 

Continental Airlines Finance Trust II, 6.00%, 11/15/30, Cum. Conv. Pfd. 

 

2,742,100

 

**UTILITIES – (2.14%)**

 

 

 

 

169,500

 

AES Trust III, 6.75%, 10/15/29, Conv. Pfd. 

 

8,085,150

 

 

 

 

 

 

 

 

 

 

 

Total Convertible Preferred Stock – (identified cost $20,839,386)

 

24,130,564

 

 

**Convertible Bonds – (44.47%)**

 

**CAPITAL GOODS – (4.33%)**

 

 

 

$

13,600,000

 

Masco Corp., Series B Conv. Sr. Notes, Zero Cpn., 2.95%,

 

 

 

 

 

 

07/20/31 (c)(d)

 

6,307,000

 

 

5,500,000

 

Quanta Services, Inc., Conv. Sub. Deb., 4.50%, 10/01/23

 

7,129,375

 

 

3,000,000

 

Quanta Services, Inc., Conv. Sub. Notes, 4.00%, 07/01/07

 

2,917,500

 

 

 

 

 

 

16,353,875

 

**COMMERCIAL SERVICES & SUPPLIES – (7.26%)**

 

 

 

 

9,160,000

 

NCO Group Inc., Conv. Sub. Notes, 4.75%, 04/15/06

 

9,148,550

 

 

7,200,000

 

School Specialty, Inc., Conv. Sub. Notes, 3.75%/Zero Cpn., 08/01/23 (e)

 

8,793,000

 

 

8,260,000

 

Waste Connections, Inc., Conv. Sub. Notes, 4.19313%, 05/01/22 (f)

 

9,449,440

 

 

 

 

 

 

27,390,990

 

**CONSUMER FINANCE – (5.16%)**

 

 

 

 

11,100,000

 

American Express Co., Ser. 144A Conv. Sr. Notes, 1.85%/Zero Cpn.,

 

 

 

 

 

 

12/01/33 (b)(e)

 

11,766,000

 

 

14,200,000

 

Providian Financial Corp., Conv. Notes, Zero Cpn.,

 

 

 

 

 

 

6.58%, 02/15/21 (c)(d)

 

7,685,750

 

 

 

 

 

 

19,451,750

 

**CONSUMER SERVICES – (3.03%)**

 

 

 

 

4,900,000

 

GTECH Holdings Corp., Conv. Deb., 1.75%, 12/15/21

 

11,447,625

 

**ENERGY – (5.77%)**

 

 

 

 

12,400,000

 

Lehman Brothers Holdings Inc., Conv. Notes, (Convertible into

 

 

 

 

 

 

Devon Energy Corp.), 0.25%, 08/23/11 (g)

 

21,758,280

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS APPRECIATION & INCOME FUND – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**CONVERTIBLE BONDS – (Continued)**

 

**FOOD & STAPLES RETAILING – (0.73%)**

 

 

 

$

2,800,000

 

Costco Wholesale Corp., Conv. Sub. Notes, Zero Cpn., 1.03%,

 

 

 

 

 

 

08/19/17 (c)(d)

$

2,758,000

 

**HEALTH CARE EQUIPMENT & SERVICES – (2.62%)**

 

 

 

 

16,900,000

 

Universal Health Services, Inc., Conv. Deb., 0.426%, 06/23/20

 

9,886,500

 

**MATERIALS – (2.30%)**

 

 

 

 

9,000,000

 

Sealed Air Corp., Ser. 144A Conv. Sr. Notes, 3.00%, 06/30/33 (b)

 

8,696,250

 

**MEDIA – (2.04%)**

 

 

 

 

13,050,000

 

News America Inc., Conv. Notes, Zero Cpn., 3.36%, 02/28/21 (c)(d)

 

7,683,188

 

**MULTI-LINE INSURANCE – (3.92%)**

 

 

 

 

2,500,000

 

American International Group, Inc., Conv. Sr. Deb., Zero Cpn., 1.76%,

 

 

 

 

 

 

11/09/31 (c)(d)

 

1,696,875

 

 

13,895,000

 

American International Group, Inc., Conv. Sr. Notes, 0.50%, 05/15/07

 

13,113,406

 

 

 

 

 

 

14,810,281

 

**PHARMACEUTICALS & BIOTECHNOLOGY – (1.06%)**

 

 

 

 

4,400,000

 

Valeant Pharmaceuticals International, Conv. Sub. Notes,

 

 

 

 

 

 

4.00%, 11/15/13

 

4,009,500

 

**REAL ESTATE – (2.42%)**

 

 

 

 

8,500,000

 

Vornado Realty L.P., Conv. Sr. Deb., 3.875%, 04/15/25

 

9,116,250

 

**RESIDENTIAL/COMMERCIAL BUILDING – (0.50%)**

 

 

 

 

1,600,000

 

WCI Communities, Inc., Ser. 144A Conv. Sr. Sub. Notes, 4.00%,

 

 

 

 

 

 

08/05/23 (b)

 

1,880,000

 

**SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT – (3.33%)**

 

 

 

 

2,675,000

 

Fairchild Semiconductor Corp., Conv. Sr. Sub., 5.00%, 11/01/08

 

2,648,250

 

 

10,220,000

 

International Rectifier Corp., Conv. Sub. Notes, 4.25%, 07/15/07

 

9,913,400

 

 

 

 

 

 

12,561,650

 

 

 

 

 

Total Convertible Bonds – (identified cost $149,666,601)

 

167,804,139

 

 

**CORPORATE Bonds – (0.87%)**

 

**AUTOMOTIVE RETAIL – (0.48%)**

 

 

 

 

1,900,000

 

AutoZone, Inc., Sr. Notes, 5.50%, 11/15/15

 

1,820,988

 

**ENERGY – (0.39%)**

 

 

 

 

1,300,000

 

Occidental Petroleum Corp., Sr. Notes, 6.75%, 01/15/12

 

1,444,398

 

 

 

 

 

Total Corporate Bonds  – (identified cost $3,403,125)

 

3,265,386

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS APPRECIATION & INCOME FUND – (Continued)**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (19.81%)**

 

**AUTOMOTIVE RETAIL – (1.39%)**

 

 

 

 
 

62,900

 

AutoZone, Inc.*

$

2,721,316

 

 

**CAPITAL GOODS – (1.76%)**

 

 

 

 

88,700

 

Masco Corp. 

 

2,721,316

 

 

306,700

 

Quanta Services, Inc.*

 

3,913,492

 

 

 

 

 

 

6,634,808

 

**COMMERCIAL SERVICES & SUPPLIES – (1.10%)**

 

 

 

 

118,000

 

Waste Connections, Inc.*

 

4,139,440

 

**DEPARTMENT STORES – (1.76%)**

 

 

 

 

140,350

 

J. C. Penney Co., Inc. 

 

6,655,397

 

**DIVERSIFIED FINANCIAL SERVICES – (1.35%)**

 

 

 

 

111,500

 

Citigroup Inc. 

 

5,075,480

 

**ENERGY – (0.33%)**

 

 

 

 

14,500

 

Occidental Petroleum Corp. 

 

1,238,735

 

**FOOD & STAPLES RETAILING – (0.74%)**

 

 

 

 

64,900

 

Costco Wholesale Corp. 

 

2,793,621

 

**MEDIA – (0.50%)**

 

 

 

 

115,000

 

News Corp., Class B

 

1,897,500

 

**MULTI-LINE INSURANCE – (0.41%)**

 

 

 

 

24,900

 

American International Group, Inc. 

 

1,542,804

 

**REAL ESTATE – (9.29%)**

 

 

 

 

163,112

 

Centerpoint Properties Trust

 

7,307,417

 

 

245,667

 

General Growth Properties, Inc. 

 

11,037,818

 

 

245,160

 

SL Green Realty Corp. 

 

16,715,009

 

 

 

 

 

 

35,060,244

 

**SOFTWARE & SERVICES – (1.18%)**

 

 

 

 

103,000

 

SAP AG-ADR

 

4,462,990

 

 

 

 

 

Total Common Stock – (identified cost $38,889,492)

 

74,737,444

 

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS APPRECIATION & INCOME FUND – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**SHORT TERM INVESTMENTS – (27.91%)**

 

$

63,993,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $64,013,638

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $65,272,860)

$

63,993,000

 

 

41,326,000

 

UBS Financial Services Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $41,339,328

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $42,152,520)

 

41,326,000

 

 

 

 

 

Total Short Term Investments – (identified cost $105,319,000)

 

105,319,000

 

 

 

 

 

Total Investments – (99.45%) – (identified cost $318,117,604) – (a)

 

375,256,533

 

 

 

 

Other Assets Less Liabilities – (0.55%)

 

2,077,747

 

 

 

 

Net Assets – (100.00%)

$

377,334,280

 

 

*Non-Income Producing Security.

 

(a)    Aggregate cost for Federal Income Tax purposes is $318,199,030. At September 30, 2005 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

Unrealized appreciation

$

61,495,253

 

 

 

 

Unrealized depreciation

 

(4,437,750

)

 

 

 

Net unrealized appreciation

$

57,057,503

 

 

(b)    These securities are subject to Rule 144A.  The Board of Directors of the Fund has determined that there is sufficient liquidity in these securities to realize current valuations.  These securities amounted to $22,342,250 or 5.92% of the Fund’s net assets, as of September 30, 2005.

(c)    As of September 30, 2005, zero coupon bonds represented $26,130,813 or 6.93% of the Fund’s net assets. Because zero coupon bonds pay no interest their value is generally more volatile than the value of other debt securities.

(d)

Zero coupon bonds reflect effective yield on the date of purchase.

(e)           Represents a step-down bond: a bond that pays one coupon rate for an initial period followed by a lower coupon rate.

(f)    The interest rates on floating rate securities, shown as of September 30, 2005, may change daily or less frequently.

(g)    Illiquid Security – Securities may be considered illiquid if they lack a readily available market or if valuation has not changed for a certain period of time.  The aggregate value of illiquid securities in Davis Appreciation & Income Fund was $21,758,280, or 5.77% of the Fund’s net assets as of September 30, 2005. 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS REAL ESTATE FUND**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (98.28%)**

 

**APARTMENTS (REITS) – (11.93%)**

 

 

 

 

498,800

 

American Campus Communities, Inc. 

$

11,981,176

 

 

324,000

 

Archstone-Smith Trust

 

12,917,880

 

 

218,000

 

Camden Property Trust

 

12,153,500

 

 

229,333

 

Essex Property Trust, Inc. 

 

20,639,970

 

 

771,921

 

United Dominion Realty Trust, Inc.

 

18,294,528

 

 

 

 

 

 

75,987,054

 

**DIVERSIFIED (REITS) – (13.38%)**

 

 

 

 

587,300

 

Capital Automotive REIT

 

22,731,447

 

 

670,000

 

Cousins Properties, Inc. 

 

20,247,400

 

 

520,673

 

Duke Realty Corp. 

 

17,640,401

 

 

284,562

 

Vornado Realty Trust.

 

24,648,761

 

 

 

 

 

 

85,268,009

 

**HEALTH CARE (REITS) – (1.98%)**

 

 

 

 

391,000

 

Ventas, Inc. 

 

12,590,200

 

**MORTGAGE (REITS) – (1.45%)**

 

 

 

 

384,300

 

Gramercy Capital Corp. 

 

9,207,828

 

**OFFICE PROPERTY (REITS) – (26.90%)**

 

 

 

 

289,113

 

Alexandria Real Estate Equities, Inc.

 

23,906,754

 

 

416,900

 

Arden Realty, Inc. 

 

17,163,773

 

 

259,842

 

Boston Properties, Inc. 

 

18,422,798

 

 

585,400

 

Brandywine Realty Trust

 

18,200,086

 

 

460,356

 

CarrAmerica Realty Corp. 

 

16,549,798

 

 

415,400

 

Columbia Equity Trust Inc. 

 

6,064,840

 

 

618,138

 

Corporate Office Properties Trust

 

21,603,923

 

 

388,600

 

Kilroy Realty Corp. 

 

21,773,258

 

 

406,358

 

SL Green Realty Corp. 

 

27,705,488

 

 

 

 

 

 

171,390,718

 

**REAL ESTATE OPERATIONS/DEVELOPMENT – (8.54%)**

 

 

 

 

1,420,183

 

Brixton PLC

 

9,775,440

 

 

148,600

 

Derwent Valley Holdings PLC

 

3,423,033

 

 

698,284

 

Forest City Enterprises, Inc., Class A

 

26,604,620

 

 

184,000

 

Hammerson PLC

 

3,023,081

 

 

490,000

 

Liberty International PLC. 

 

8,599,402

 

 

319,000

 

Slough Estates PLC

 

2,996,121

 

 

 

 

 

 

54,421,697

 

**REGIONAL MALLS (REITS) – (9.05%)**

 

 

 

 

547,557

 

General Growth Properties, Inc. 

 

24,601,736

 

 

246,800

 

Mills Corp. 

 

13,593,744

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS REAL ESTATE FUND – (Continued)**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (Continued)**

 

**REGIONAL MALLS (REITS) – (Continued)**

 

 

 

 

135,200

 

Pennsylvania REIT

$

5,702,736

 

 

185,253

 

Simon Property Group, Inc. 

 

13,730,952

 

 

 

 

 

 

57,629,168

 

**SHOPPING CENTERS (REITS) – (12.35%)**

 

 

 

 

476,808

 

Developers Diversified Realty Corp. 

 

22,266,934

 

 

625,590

 

Kimco Realty Corp. 

 

19,656,038

 

 

270,400

 

Pan Pacific Retail Properties, Inc. 

 

17,819,360

 

 

329,778

 

Regency Centers Corp. 

 

18,945,746

 

 

 

 

 

 

78,688,078

 

**WAREHOUSE & INDUSTRIAL (REITS) – (12.58%)**

 

 

 

 

280,500

 

AMB Property Corp. 

 

12,594,450

 

 

948,254

 

Centerpoint Properties Trust

 

42,481,779

 

 

566,492

 

ProLogis

 

25,101,261

 

 

 

 

 

 

80,177,490

 

**TRANSPORTATION – (0.12%)**

 

 

 

 

17,100

 

Florida East Coast Industries, Inc. 

 

774,459

 

 

 

 

 

Total Common Stock – (identified cost $404,356,814)

 

626,134,701

 

 

**PREFERRED STOCK – (0.46%)**

 

**APARTMENTS (REITS) – (0.46%)**

 

 

 

 

43,700

 

Equity Residential, 7.00%, Series E, Cum. Conv. Pfd. 

 

1,851,788

 

 

32,000

 

Equity Residential, 8.60%, Series D, Cum. Pfd. 

 

856,000

 

 

10,000

 

Equity Residential, 9.125%, Series C, Cum. Pfd. 

 

258,450

 

 

 

 

 

Total Preferred Stock – (identified cost $2,204,017)

 

2,966,238

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 2005 (*Unaudited*) 

**DAVIS REAL ESTATE FUND – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**SHORT TERM INVESTMENTS – (1.02%)**

 

$

3,935,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $3,936,269

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $4,013,700)

$

3,935,000

 

 

2,541,000

 

UBS Financial Services Inc. Joint Repurchase Agreement, 3.87%,

 

 

 

 

 

 

10/03/05, dated 09/30/05, repurchase value of $2,541,819

 

 

 

 

 

 

(collateralized by: U.S. Government agency obligations in a pooled 

 

 

 

 

 

 

cash account, total market value $2,541,819)

 

2,541,000

 

 

 

 

 

Total Short Term Investments – (identified cost $6,476,000)

 

6,476,000

 

 

 

 

 

Total Investments – (99.76%) – (identified cost $413,036,831) – (a)

 

635,576,939

 

 

 

 

Other Assets Less Liabilities – (0.24%)

 

1,506,767

 

 

 

 

Net Assets – (100.00%)

$

637,083,706

 

*Non-Income Producing Security.

 

(a)    Aggregate cost for Federal Income Tax purposes is $415,381,353.  At September 30, 2005 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

 

Unrealized appreciation

$

221,277,041

 

 

 

 

Unrealized depreciation

 

(1,081,455

)

 

 

 

Net unrealized appreciation

$

220,195,586

 

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

 

**ITEM 2.  CONTROLS AND PROCEDURES**

 

 

(a)

The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective as of a date within 90 days of the filing date of this report.

 

 

(b)

There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls.

 

**ITEM 3.  EXHIBITS**

 

 

EX-99.CERT - Section 302 Certification

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

DAVIS SERIES, INC.

 

By /s/ Kenneth C. Eich

Kenneth C. Eich

Principal Executive Officer

 

Date:  November 29, 2005

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By /s/ Kenneth C. Eich

Kenneth C. Eich

Principal Executive Officer

 

Date:  November 29, 2005

 

By /s/ Douglas A. Haines

Douglas A. Haines

Principal Financial officer

 

Date:  November 29, 2005